MeathCommute
Registered User
- Messages
- 204
A bigger question is why do you have so much cash in your company? Have you done a proper tax plan?
Brendan
Why not just take it out as an advance on your wages. Then when your inheritance comes in use it to make up for lost salary in the coming months.
This is a total non issue, particularly if it's the case that the money will be made good to the company by the director very soon after it's withdrawn from the company.
It's most certainly not a total non-issue. Any form of company loan or advance to a director or connected party, amounting to 10% or more of company assets as defined, is an indictable offence under company law and the ODCE have initiated many prosecutions against companies and directors for such breaches in the past.
Even if prosecution isn't an issue, in my experience as an accountant, such messing can create endless issues for those concerned. Especially if a temporary advance turns into a semi-permanent one.
And, as such loans and advances are disclosable on company accounts, they can dramatically raise the risk of Revenue audit.
I think you should heed the advice you so often throw out yourself and read (and quote) my post more carefully.
This is a total non issue, particularly if it's the case that the money will be made good to the company by the director very soon after it's withdrawn from the company.
It's highly unlikely a cash rich contractor's company will have any issue under company law.
On your final comment, I'm not sure how a balanced directors loan account, without an overdrawn balance, would heighten the risk of an audit.
Why not just delay delivery of the car. Especially if it's arriving early. Odd to buy something if one didn't have the money to pay for it in hand.
Balances overdrawn at any time of year are explicitly reportable on company statutory accounts.
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